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 DINA BUSINESS SCHOOLDINA INSTITUTE OF HOTEL AND BUSINESSMANAGEMENTPUNE – 411 028CENTRE CODE – 02758ASSIGNMENT – SET 1 / SET 2NAME: TAHA MOHAMMED DHILAWALAROLL.NO.: 520850852PAPER / SUBJECT :
 
Marketing ManagementCODE: MB0030SEMESTER:I / II / III / IV
SIKKIM MANIPAL UNIVERSITY
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1.Analyze the existing business portfolio of any onecompany using BCG matrix, GE matrix, and Ansoff model.ANS.
BCG Matrix of KFC
The need for strategy, in order to expand its existing product invery promising markets for KFC is very essential. KFC, along withMcDonalds, and other major fast food chains have dominated theAmerican continent as well as else where. Since the 1950’s when thefounder of KFC had a dream, of building an empire in the fast foodmarket, the company has undergone lots of changes. The company haschanged ownership; it has taken over from Pepsi and passed over toTricon, which owns Pizza hut, Taco bell and others. Nowadays, KFC, still dominates the chicken fast food industrywhile has stores in more than 100 countries operating vast profits. (DeWitt 'et al.2004a) Although, due to increased conditions of life, anddifferentiation of the life style of the population around the world, thereis still a lots of room for expansion, especially in countries with large population, and high development rate. KFC using the BCG matrix andSWOT analysis to analyze what is the current position of the companyand identify that the company has the potentials to growth in fast foodmarket.
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In the late 1960s the Boston Consulting Group, a leadingmanagement consulting company, designed a four-cell matrix known asBCG Growth/Share Matrix. This tool was developed to aid companiesin the measurement of all their company businesses according torelative market share and market growth.The BCG Matrix made a significant contribution to strategicmanagement and continues to be an important strategic tool used bycompanies today. The matrix provides a composite picture of thestrategic position of each separate business within a company so thatthe management can determine the strengths and the needs of allsectors of the firm. The development of the matrix requires theassessment of a business portfolio, which include an organization’sautonomous divisions ( activities, or profit centers).The BCG or growth- share matrix imposes a two- dimensionalanalysis on management of Strategic Business Units: a comparativeanalysis of business strength and an assessment of the environment.The business strength measure is the business;s Relative Market share.The environmental measure is the Market Growth Rate.BCG Matrix: The market growth rate measures industryattractiveness. Because for the case of YUM Brand, all SBUs ( KFC,Taco Bell, Pizza Hut, Long John Silver’s, A&W) are located in thesame fast- food industry, the referent standard is the industry growthrate measured against the SBUs’ growth rate. The underlying theory for examining market growth rate is the industry life cycle. The BCGassumes that growth rates ( life cycle stages) affect a firm’s finances.
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